MicroStrategy is a business intelligence organization that is known around the world for hosting one of the largest commercial reserves. However, at present most of the investors in the cryptocurrency industry are facing the heat from the market due to the dominating cascading trends across the board. Under the current circumstances, Bitcoin prices plunged 50% away from their ATH last year.
In the same way, commercial investors like MS also feel the pressure emanating from the bear market. At present, MS valuation is lurking in the deficit sector, with Bitcoin prices dipping as low as $30,700 per unit. During the last 36 days, Bitcoin prices have continued to plunge and experience an additional 20% decline.
MicroStrategy’s NASDAQ listing is also affected by the falling graph of the Bitcoin market value in the international markets. It is worth noting that MS holds around 129 thousand Bitcoins as company reserves. On Monday, the flagship currency dipped to $30K according to Trading View projections.
The situation is turning dire for MS, considering that the company drew a massive loan in April to purchase more Bitcoins. In its latest Bitcoin installment, MS acquired 4,167 Bitcoins at an average cost of $45,714 per unit. In case Bitcoin dips below $21K, MS can sell a portion of the recently acquired Bitcoins and use it to pay off some of the loans and also use its existing Bitcoin reserves as collateral for a loan.
Tesla’s Gains on Bitcoin have Vanished
Another Bitcoin commercial holder, Tesla is also experiencing losses, but in comparison to MS, the losses of the EV manufacturers persisted longer. Tesla holds 43,200 Bitcoins at a collective price of $1.5 billion averaging at $34,700 per unit. At the current Bitcoin market value, Tesla’s losses are estimated to be around 10% in an unrealized state. At present, MS and Tesla have not issued any statement to address the matter.
US economists have nominated the main culprit behind the crypto and stock market crash to be the upcoming recession. However, the government of El Salvador has purchased more Bitcoins recently. Salvadorian President Nayib Bukele reportedly bought the dip adding 500 Bitcoins for $15.5 million to the national reserves. Bukele also took the opportunity to unveil the plans for Bitcoin City.